U.S. Stock Market Closes with Gains on Black Friday
On Friday, the Dow Jones Industrial Average rose, ending the major averages with a four-week winning streak. The 30-stock Dow rose 117.12 points, or 0.33%, to 35,390.15. Similarly, the S&P 500 ticked higher by 0.06% to end at 4,559.34, while the Nasdaq Composite fell 0.11%, closing at 14,250.85.
Black Friday, the start of the holiday shopping season, saw major retail shares rising slightly. Walmart and Target saw gains of 0.9% and 0.74% respectively, while Amazon ticked higher by 0.02%. According to TD Cowen retail analyst Oliver Chen, they forecasted flat traffic trends for Black Friday, as budget-conscious consumers prioritize gifts for others over themselves.
This week, the Dow gained 1.27%, while the S&P 500 advanced 1%, and the Nasdaq Composite added 0.89%. It’s the fourth consecutive positive week for the major averages, the longest for the S&P 500 and Nasdaq since June. Meanwhile, the Dow hasn’t posted a weekly run this long since April.
Treasury yields hit multimonth lows on hope inflation is cooling, and the Federal Reserve may be done raising rates. The benchmark rate was up 6 basis points at around 4.476% on Friday. According to Scott Ladner, chief investment officer at Horizon Investments, “The market’s expectation for the volatility of interest rates is continuing to collapse. That’s telling us that the market is coming on board finally with this idea that … 4% to 5% rates is the right level for 2024 across the curve, that the equity market can handle.”
The U.S. stock market closed at 1 p.m. On Wednesday, the major averages closed higher after the 10-year Treasury yield fell to levels not seen since September.
Retail shares saw gains as Black Friday kicked off the holiday shopping season. Walmart and Target each saw a 0.9% and 0.74% increase respectively, with Amazon ticking higher by 0.02%. “Based on our checks, we forecast flat traffic trends this Black Friday as a budget-conscious consumer pulls back and prioritizes gifts for others vs. self,” wrote TD Cowen retail analyst Oliver Chen in a note.
The movements in the market come as Treasury yields this week hit multimonth lows on hope inflation is cooling and the Federal Reserve may be done raising rates. The benchmark rate was up 6 basis points at around 4.476% on Friday. “The market’s expectation for the volatility of interest rates is continuing to collapse,” said Scott Ladner, chief investment officer at Horizon Investments. “That’s telling us that the market is coming on board finally with this idea that … 4% to 5% rates is the right level for 2024 across the curve, that the equity market can handle.”
